United States Securities and Exchange Commission
Form 10-Q
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended March 31, 2005
Dover Downs Gaming & Entertainment, Inc.
(Exact name of registrant as specified in its charter)
Delaware |
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51-0414140 |
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(State or Other Jurisdiction of Incorporation) |
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(I.R.S. Employer Identification Number) |
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1131 North DuPont Highway, Dover, Delaware 19901 |
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(Address of principal executive offices) |
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(302) 674-4600 |
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(Registrant’s telephone number, including area code) |
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N/A |
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(Former name, former address and former fiscal year, if changed since last report) |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes ý No o
As of April 29, 2005, the number of shares of each class of the registrant’s common stock outstanding is as follows:
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Common Stock - |
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9,564,163 shares |
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Class A Common Stock - |
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14,339,687 shares |
Part I – Financial Information
Item 1. Financial Statements
DOVER DOWNS GAMING & ENTERTAINMENT, INC.
In Thousands, Except Per Share Amounts
(Unaudited)
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Three Months Ended March 31, |
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2005 |
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2004 |
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Revenues: |
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Gaming |
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$ |
49,045 |
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$ |
47,309 |
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Other operating |
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3,046 |
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3,251 |
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52,091 |
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50,560 |
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Expenses: |
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Gaming |
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37,301 |
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37,652 |
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Other operating |
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2,995 |
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2,441 |
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General and administrative |
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1,254 |
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1,147 |
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Depreciation |
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1,717 |
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1,691 |
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43,267 |
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42,931 |
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Operating earnings |
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8,824 |
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7,629 |
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Interest expense |
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427 |
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153 |
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Earnings before income taxes |
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8,397 |
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7,476 |
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Income taxes |
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3,418 |
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3,042 |
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Net earnings |
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$ |
4,979 |
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$ |
4,434 |
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Net earnings per common share (Note 3): |
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Basic |
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$ |
0.21 |
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$ |
0.17 |
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Diluted |
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$ |
0.21 |
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$ |
0.17 |
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The Notes to the Consolidated Financial Statements are an integral part of these consolidated statements.
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DOVER DOWNS GAMING & ENTERTAINMENT, INC.
CONSOLIDATED BALANCE SHEET
In Thousands, Except Share and Per Share Amounts
(Unaudited)
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March 31, |
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December 31, |
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ASSETS |
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Current assets: |
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Cash |
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$ |
17,968 |
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$ |
17,688 |
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Accounts receivable |
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2,378 |
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2,919 |
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Due from State of Delaware |
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2,383 |
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10,080 |
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Inventories |
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2,041 |
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2,147 |
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Prepaid expenses and other |
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1,681 |
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2,220 |
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Receivable from Dover Motorsports, Inc. |
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17 |
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2 |
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Deferred income taxes |
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2,237 |
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2,168 |
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Total current assets |
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28,705 |
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37,224 |
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Property and equipment, net |
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122,409 |
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123,076 |
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Total assets |
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$ |
151,114 |
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$ |
160,300 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
5,295 |
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$ |
6,801 |
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Purses due horsemen |
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2,371 |
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9,082 |
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Accrued liabilities |
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9,838 |
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11,990 |
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Income taxes payable |
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4,056 |
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651 |
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Deferred revenue |
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403 |
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195 |
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Total current liabilities |
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21,963 |
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28,719 |
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Notes payable to banks |
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46,000 |
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51,950 |
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Deferred income taxes |
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6,798 |
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6,861 |
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Commitments and contingencies (see Notes to the Consolidated Financial Statements) |
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Stockholders’ equity: |
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Preferred stock, $0.10 par value; 1,000,000 shares authorized; issued and outstanding: none |
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— |
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— |
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Common stock, $0.10 par value; 74,000,000 shares authorized; issued and outstanding: March 31, 2005-9,564,163 shares; December 31, 2004-9,363,791 shares |
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957 |
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936 |
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Class A common stock, $0.10 par value; 50,000,000 shares authorized; issued and outstanding: March 31, 2005-14,339,687 shares; December 31, 2004-14,475,059 shares |
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1,434 |
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1,448 |
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Additional paid-in capital |
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36,579 |
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35,764 |
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Retained earnings |
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38,700 |
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35,156 |
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Deferred compensation |
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(1,317 |
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(534 |
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Total stockholders’ equity |
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76,353 |
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72,770 |
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Total liabilities and stockholders’ equity |
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$ |
151,114 |
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$ |
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